Author: Mike Cohen and Rene Vollgraaff. Cape Town – If the appointment of South Africa’s new finance minister has alarmed investors, it may be because they’ve never heard of him. The rand plunged late on Wednesday after President Jacob Zuma announced that ruling party lawmaker David van Rooyen will replace Nhlanhla Nene, who held the post for less than two years. The currency fell as much as 5.4 percent against the dollar, hitting a record low of 15.3857. “I know nothing about the new man,” George Herman, head of South African investments at Cape Town-based Citadel Investment Services, said by phone. “I’ve never heard of him or dealt with him before. The markets are not going to like this.”
Author: Nyasha Musviba
Meet David van Rooyen: The man who must fill Nene’s shoes
Cape Town – David Douglas Des van Rooyen, the man President Jacob Zuma named as Finance Minister Nhlanhla Nene’s successor in a shock announcement on Wednesday, has been described by economists as largely unknown, with little policy experience. But according to the ANC Van Rooyen holds a string of qualifications and has held a number of leadership positions in the ANC from 1994 to 2007. Prior to this he was an MK operative and soldier, and held various leadership positions in Cosas and Khutsong Student Congress. He was also a UDF representative and NUM member.
David van Rooyen the new finance minister
Johannesburg – President Jacob Zuma replaced Finance Minister Nhlanhla Nene with ANC MP David van Rooyen on Wednesday night. Van Rooyen is the whip of the standing committee on finance and whip of the economic transformation cluster. He was a former Umkhonto we Sizwe operative in the 1980s and has held a number of leadership positions in the ANC from 1994 to 2007. Van Rooyen is a former executive mayor of Merafong Municipality and a former North West provincial chairperson of the South African Local Government Association. He has an advance Business Management Diploma, a Diploma in Municipal Governance, a certificate in Municipal Governance, a certificate in Councillor Development, a certificate in Municipal Finance, a certificate in Economic and Public Finance and a Masters Degree in Public Development and Management.
Rand dives after Nene removal
Cape Town – The rand plummeted against major international currencies on Wednesday evening shortly after President Jacob Zuma removed Nhlanhla Nene as finance minister. By 21:20 the rand was trading at R16.34 to the euro, down 2.74%, and R22.5 against the pound, down 2.5%. The rand was down 1.39% against the greenback at R14.83/$. Zuma announced late on Wednesday the removal of Nene from the Finance Portfolio in Cabinet, saying Nene had been removed ahead of his “deployment to another strategic position”. Zuma has appointed ANC member of parliament, David van Rooyen, as the new Minister of Finance.
Zuma removes Nene as finance minister
Cape Town – President Jacob Zuma on Wednesday announced the removal of Finance Minister Nhlanhla Nene from the Finance portfolio in Cabinet. “I have decided to remove Mr Nhlanhla Nene as Minister of Finance, ahead of his deployment to another strategic position,” Zuma said in a statement. Zuma said that Nene had done well since his appointment as Minister of Finance during a difficult economic climate. Zuma has appointed ANC member of parliament, David Van Rooyen, as the new Minister of Finance. Van Rooyen served as the Whip of the Standing Committee on Finance and as Whip of the Economic Transformation Cluster. He was also a former executive mayor of Merafong Municipality and a former North West provincial chairperson of the South African Local Government Association. “The new deployment of Mr Nene will be announced in due course,” Zuma said.
Victory for taxpayer in motor vehicle salary sacrifice scheme
Author: Ruaan van Eeden (Cliffe Dekker Hofmeyr). In the recently reported case of Anglo Platinum Management Services v SARS [2015] ZASCA 180 (Anglo), the judgment of which was delivered on 30 November 2015, the Supreme Court of Appeal (SCA) ruled in favour of the taxpayer in respect of a motor vehicle salary sacrifice scheme. The judgment stresses the importance of employers and employees properly agreeing to, understanding and correctly implementing remuneration structures that contain a salary sacrifice component.
Proposed extension of existing prescription periods (section 99 of the Tax Administration Act)
Author: Mareli Treurnicht. Section 99 of the Tax Administration Act, No 28 of 2011 (TAA) prescribes the period of limitations (ie prescription) for the issuance of assessments. Section 99 currently states that the South African Revenue Service (SARS) may not make an assessment in terms of Chapter 8 of the TAA, inter alia: three years after the date of assessment of an original assessment by SARS; (in the case of self-assessment for which a return is required) five years after the date of assessment of an original assessment by way of self-assessment by the taxpayer or, if no return is received, by SARS; or (in the case of a self-assessment for which no return is required) after the expiration of five years from either the date of the last payment of the tax for the tax period or the effective date, if no payment was made in respect of the Read More …
OVER 5.94 MILLION MEET TAX DEADLINE
Pretoria, 29 November 2015 – The South African Revenue Service (SARS) Acting Commissioner, Jonas Makwakwa announced that SARS received 5.94 million tax returns at the end of the Tax Season for non-provisional taxpayers which ended on Friday, 27 November. Announcing the preliminary results Makwakwa paid tribute to taxpayers that met their responsibility. “No doubt this is a significant achievement. We are proud of the high level of fiscal citizenship demonstrated by taxpayers. Thank you South Africa, this Tax Season belongs to the millions of taxpayers that submitted their tax returns on time”. The 5.94 million submissions received were 11,52% higher than in 2014. This number includes individuals, trusts and prior year submissions. Compliance for taxpayers filing on time exceeded 90% for the third consecutive year.
Carbon Tax – Liable Entities
Author: Mansoor Parker and Andrew Gilder (ENSafrica) On Monday 2 November 2015, the South African National Treasury published a Draft Carbon Tax Bill (the “Bill”) for public comment, with the comment period commencing immediately and continuing until 15 December 2015. Among the themes that we will be exploring in this series of articles on the Bill are the aspects of the carbon tax regime that will feel out-of-the-ordinary for professional tax practitioners. Like the phenomenon to which it is intended to respond, namely climate change (as much an economic challenge as an environmental one), a comprehensive response to the carbon tax will require tax professionals to look beyond their usual sphere of operations and to cooperate with professionals from a range of other disciplines. This is also a function of the tax design which encompasses elements of tax law, carbon markets law, environmental law and financial and operational strategy. While Read More …
Proposed amendments to the rules of prescription – does this leave a taxpayer with any certainty?
Authors: Robert Gad and Taryn Solomon (ENSafrica). A fundamental reason for the existence of the rules of prescription in our tax law is to provide a taxpayer with certainty as regards its tax position. It is therefore important that such rules are clear and not subject to unfettered discretions. In disputes with the Commissioner for South African Revenue Service (“the Commissioner” or “SARS”), prescription is a powerful defence available to compliant taxpayers, allowing them to bring finality to their tax assessments.